The rise in people looking for work is an encouraging sign that Americans are more optimistic about their prospects. The job gain last month, though modest, suggested the U.S. economy remains steady if not particularly strong.

Employers added 160,000 jobs, the fewest in seven months, after a streak of robust monthly gains. Still, the report pointed to a U.S. job market that continues to generate steady hiring and to outperform those of most other major countries.